Thus, countrylevel gini coefficients cannot be aggregated into regional or global ginis, although a. The gini coefficient is a number between 0 and 1, where 0 corresponds with perfect equality where everyone has the same income and 1 corresponds with perfect inequality where one person has all the incomeand everyone else has no income. A lorenz curve plots the cumulative percentages of total income received against the cumulative number of recipients, starting with the poorest individual. Apr 25, 2017 the gini coefficient measures income the inequality of a population of a country or region. Of the 22 member countries of organization for economic cooperation and. Another limitation of the gini coefficient is that it is not additive across groups, i. The gini coefficient can vary from 0 perfect equality, also represented as 0% to 1 perfect inequality, also represented as 100%.
Data are based on primary household survey data obtained from government statistical. Gini index world bank estimate colombia world bank, development research group. For instance, around the time of the great recession, in 2008, scholars branko milanovic and christoph lakner surmise that the global gini coefficient for income was 0. Gini coefficient definition, calculation and indias rankings. Where can i find the gini coefficient of all us counties. Thus, country level gini coefficients cannot be aggregated into regional or global gini s, although a gini coefficient can be computed for the aggregate. The gini coefficient also known as the gini index or gini ratio is a measure of differences in income. Income inequality among individuals is measured here by five indicators. Oct 22, 2019 the gini coefficient, or gini index, is derived from the lorenz curve, and like the lorenz curve it measures the degree of economic equality across a given population, and simplifies this reality into a single number. If a 0, it means the lorenz curve is actually the line of equality. A gini of zero reflects perfect equality, where every household has the same income.
Poor countries those with low percapita gdp have gini coefficients that fall over the whole. On income inequality and population size munich personal repec. Summary economic growth translated into improvements in living conditions for everyone in the country, especially for those at the bottom of the income distribution. Shown is the simple crosscountry average of gini coefficientsas per the. Share of income going to the bottom 40% in south africa 2006. Emmanuel saez and i construct top wealth shares, 10.
The more nearly equal a country s income distribution, the closer its lorenz curve to the 45 degree line and the lower its gini index, e. A sharp increase in the gini coefficient over the past 15 years, increasing from 30 in 2000 to 41 in 20. Between 2000 and 2015, for every country where the gini index increased by. The gini index or gini coefficient is a statistical measure of distribution developed by the italian statistician corrado gini in 1912. Release of oecd inequality update 2016 income inequality remains. Mar 20, 2020 graph and download economic data for gini index for israel sipovginiisr from 1979 to 2016 about israel, gini, and indexes. Chinas average gini coefficient of recent 10 years is 0. Vietnam systematic country diagnostic 2016 vietnam systematic country diagnostic 2016 priorities for inclusive and sustainable growth sustaining success. Inequality in wellbeing in a country that provides most.
The values of the gini coefficient in the xaxis represent percentiles of the underlying distribution on inequality indexes, in particular the 25th 0. Mapping recent inequality trends in developing countries. Understanding the gini coefficient the gini coefficient is a summary statistic that measures the dispersion of incomes on a scale of zero to one. Data are based on primary household survey data obtained from government statistical agencies and. This is a list of countries or dependencies by income inequality metrics, including gini coefficients. The gini coefficient is based on the comparison of cumulative proportions of the population against cumulative proportions of income they receive, and it ranges between 0 in the case of perfect equality and 1. We also present the coefficient of human inequality as a direct measure of inequality which is an unweighted average of inequalities in three. The more nearly equal a countrys income distribution, the closer its lorenz curve to the 45 degree line and the lower its gini index, e.
Income distribution can vary greatly from wealth distribution in a country see list of countries by. The chart comes from piketty, saez and zucman 2016 and it has. Data and research on social and welfare issues including families and children, gender equality, gini coefficient, wellbeing, poverty reduction, human capital and inequality. Gini index measures the extent to which the distribution of income or consumption expenditure among individuals or households within an economy deviates from a perfectly equal distribution. Mar 09, 2020 this statistic shows the gini coefficient on household income after taxes based on the modified oecd scale in singapore from 2010 to 2019. Gini coefficient measure of inequality 16 figure 7. In this case, the gini coefficient is 0 and it means there is perfect distribution of income everyone earns the same amount. The gini coefficient is based on the comparison of cumulative proportions of the population against cumulative proportions of income they receive, and it ranges between 0 in the case of perfect equality and 1 in the case of perfect inequality. This is a moderate decrease from 1988s estimated coefficient of 0. Gini coefficient based on income per capita and expenditure per capita 2006, 2009, 2011 and 2015 21 figure 2. Even in asia, where aggregate inequality has been on the rise, there are nonetheless a few countries where inequality is defying the regional trend. We also present the coefficient of human inequality as a direct measure of inequality which is an unweighted average of inequalities in three dimensions. Mar 20, 2020 gini index measures the extent to which the distribution of income or consumption expenditure among individuals or households within an economy deviates from a perfectly equal distribution. A gini of one represents perfect inequality, where one household has all of the income.
Without inkind transfers on education and health, inequality would have only gone down slightly by 0. A 2014 survey on public perceptions of inequality report that most indonesians consider income distribution in indonesia to be very unequal or not equal at all. It looks more closely at trends in income inequality within countries. The countries with the highest gini coefficients are. In an economic context, it is important to understand what this coefficient or index is, how is it measured and what is indias current status, for the ias exam. While a perfect scenario would be that of equality in income distribution, this is not normally the case in most of the areas around the world. This means that chinas gini coefficient is 58% higher than that of the eu. The index is the ratio of a the area between a countrys lorenz curve and the 45 degree helping line to b the entire triangular area under the 45 degree line. Read 9 answers by scientists with 5 recommendations from their colleagues to the question asked by abu m.
In an economic context, it is important to understand what this coefficient or index is, how is it measured and what is indias current status, for the ias exam gini coefficient upsc notes. Cameroon and tanzania united republic of show losses due to 34. Gini coefficient expenditure per capita by population group 2006, 2009, 2011 and 2015 22 figure 2. According to world banks poverty and shared prosperity 2016 report, the gini coefficient saw a sustained growth during the 19th and 20th centuries. Furthermore, chinas gini coefficient is 67% higher than germanys, the most typical market socialist country. World bank finds that income inequality within countries somewhat declined between the. America saw a sizable decline in the gini index in the 2000s. Data are based on primary household survey data obtained from government statistical agencies and world bank country departments. This statistic shows the gini coefficient on household income after taxes based on the modified oecd scale in singapore from 2010 to 2019. Consider now the second row of the figure which would help us define concept 2 inequality. It is useful to begin by considering what we know about wealth inequality in the u.
Fill in the fields and click send or hit enter to submit your subscription. Gini coefficient income per capita by population group 2006, 2009, 2011 and 2015 22 figure 2. Gini coefficient department of economic and social affairs. This paper focusses on income inequality in asia, its drivers and policies to combat it. Gini coefficient for various ceq income concepts, various. Between 20102014 households income from economic activities played a significant role in reducing poverty. Gini coefficient simple english wikipedia, the free. Gini coefficient income distribution inequality, by country gini index for income distribution equality for u. It was developed by the italian statistician and sociologist corrado gini and published in his 1912 paper. However, when the value is discounted for inequality, the hdi falls to 0. In this case, the gini coefficient is 0 and it means there is perfect distribution of. Gini index world bank estimate world bank, development research group.
This was much higher than the average gini coefficient of 0. Gini coefficients of turkey and other oecd countries, 201210 country gini coefficient country gini coefficient denmark 0. Thirteenth fiveyear plan 201620 emphasizes a more balanced, inclusive, and. Analysis of inequality in asia international monetary fund. The gini coefficient is usually a number between 0 and 1 or 0 to 100.
The values of gini coefficient values are between zero and one with the lowest coefficient zero representing equality in which all earn equal income while a coefficient of one indicates an inequality whereby only one person earns all the income among a group of workers. The lowest 10% of earners make 2% of all wages the next 40% of earners make 18% of all wages the next 40% of earners make 30% of all wages the highest 10% of earners make 50% of all wages. It was developed by the italian statistician corrado gini in 1912. A followup note will synthesize analytical findings on the causes of the observed increase in. The index is the ratio of a the area between a country s lorenz curve and the 45 degree helping line to b the entire triangular area under the 45 degree line. Gini coefficient is a measure of the income inequality in a country or between countries. Does namibias fiscal policy benefit the poor and reduce. Notes on how to compute gini coefficient suppose you are given data like this. Incomes are more equally distributed and fewer people are poor where social spending is high. Income inequality by country using the 90th and 10th percentiles in u. To benchmark and monitor income inequality and poverty across countries, the. It was developed by the italian statistician corrado gini in 1912 definition. The available evidence also suggests that many countries in africa and the middle east experienced an inequality drop in the 1990s2000s. Gini coefficient expenditure per capita by population group 2006, 2009, 2011 and 2015 22.
There are several estimates for the gini coefficient worldwide. The district of columbias office of revenue analysis, which uses tax return and other data to derive dcs gini coefficient, often reports a much higher number, suggesting wage distribution is. Gini coefficient definition, calculation and indias. The gini coefficient is a measure of inequality of a distribution.
The gini coefficient ranges between 0 and 1 or it can also be expressed as a number from 0 to 100 and is given by the ratio of the areas. Gini coefficient subscribe to desavoice subscribe to undesa voice. Market and disposable income inequality by country using the gini coefficient. This dataset includes information on the uncertainty of countryspecific gini coefficients that we use to estimate the uncertainty of the global gini coefficient. The gini coefficients main advantage is that it is a measure of inequality by means of a ratio analysis, rather than a variable unrepresentative of most of the population, such as per capita income or gross domestic product. Poverty trends in south africa statistics south africa. That is the minimum value of gini coefficient this country could attain. Gini coefficient measures the inequality of wealth distribution or income inequality in a particular area. The average loss due to inequality for medium hdi countries is 25. Vietnam systematic country diagnostic 2016 vietnam systematic country diagnostic 2016.
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